Improve Africa’s Domestic Resource Mobilization: Shifting the Focus on Wealth Taxation, Corruption Enablers and Aggressive Tax Avoidance
The Tax Justice Network - Africa called for greater focus on untapped assets of domestic resource mobilization at the 1st Independent Experts Meeting on Finance, Monetary Affairs, and Economic Planning.
The Tax Justice Network - Africa (TJN-A) called African Union leaders to a greater focus on areas still missing in domestic resource mobilization strategies: wealth taxation, corruption enablers and aggressive tax avoidance, among other policy recommendations made during the African Union’s 1st Independent Experts meeting on Finance, Monetary Affairs, and Economic Planning. The meeting themed “Mobilization of Domestic Resources: Fighting against Corruption and Illicit Financial Flows”’ took place from 9th to 10th April 2018 in Addis Ababa, Ethiopia.
TJN-A considers these three key areas able to boost the continent’s search for greater ownership of its economic development process. These include taxing the rich, for instance through capital gain, property and inheritance taxation, to reduce the tax burden on the poor. “We also need to look into how we can deal with the intermediaries that facilitate corruption (tax havens, banks, accounting firms, etc.) as well as the issue of aggressive tax avoidance. That is why we are calling on African leaders to broaden the scope on the fight against corruption to include international structures that facilitate the vice.’’ states Alvin Mosioma, TJN-A’s Executive Director.
The two-day meeting, jointly organized by the African Union Commission, the African Development Bank and Friedrich Ebert Stiftung, gathered experts and civil society organizations to discuss challenges and solutions concerning domestic resource mobilization, the fight against corruption and illicit financial flows (IFFs). Seven sessions structured the meeting, among others: Strengthening the financial system for development, domestic policies for tackling corruption, tackling tax-related illicit financial flows, anti-money laundering, counter financing of terrorism and tackling trade mis-invoicing. The recommendations from this meeting will be presented to the Specialized Technical Committee Meeting to take place at the AUC on April 16-17, 2018 and later on at the Ministerial Meeting.